Finding Text
Finding No.: 2022-001
Federal Agency: U.S. Department of the Interior
AL Program: 15.875 Economic, Social, and Political Development of the Territories
Federal Award No.: Compact Sector Grants
Questioned Costs: $27,380
Area: Allowable Costs/Cost Principles
Criteria:
Federal program expenditures should be necessary and reasonable for the performance of the Federal
award, in accordance with allowable costs/cost principles requirements, and be directly related to,
and in accordance with, program intent and objectives.
Condition 1:
For 3 (or 10%) of 29 non-payroll transactions tested aggregating $3,375,773 of $14,205,851 in total
non-payroll program expenditures, supporting documentation were not provided for the following:
Item # Fund #
Encumbrance/
Voucher/JV #
Account
Total
1 410150 T83102001 Training and Staff Development $ 1,750
2 410100 G22-279W Food Stuff 18,275
3 410102 G22-283C Other Supplies and Materials 5,621
$ 25,646
Condition 2:
For 8 (or 21%) of 39 payroll transactions tested aggregating $66,558 of $17,286,417 in total payroll
program expenditures, the following deficiencies were noted:
Leave hours were not supported by an approved leave form for the following:
# Employee # PPE Hours Amount
1 93573 03/12/2022 16 114
2 88856 04/23/2022 8 92
$ 206
Condition 2, continued:
Overpayment of or unsupported salaries and wages were noted for the following:
# Employee # PPE Amount
1 94419 10/09/2021 $ 170
2 203158 10/23/2021 692
3 62883 11/20/2021 34
4 93669 12/18/2021 185
5 244918 8/13/2022 293
6 205561 9/10/2022 154
$ 1,528
Item # 1 resulted from 126 unsupported additional night differential hours paid.
Item # 2 resulted from incorrect payment of 80 differential hours (paid at 20%) as regular
hours.
Item #s 3 and 4 each resulted from overpayment of 8 hours.
Item # 5 resulted from incorrect retroactive pay calculation resulting in overpayment of 102.8
hours.
Item # 6 resulted from incorrect standby differential rate used (30%) rather than the Public
Service Commission Personnel Manual rate (20%).
The above resulted in reportable questioned costs of $1,734 because the projected questioned cost
amount exceeds the $25,000 threshold.
Cause:
Inadequate file maintenance to support expenditures charged to federal programs. RepMar did not
effectively monitor the validity and allowability of expenditures.
Effect:
RepMar is in noncompliance with allowable costs/cost principles requirements. The reportable
questioned cost is $27,380.
Recommendation:
Documents supporting expenditures should be maintained. Further, RepMar management should
strengthen monitoring controls so that expenditures are verified for validity and allowability.
Views of Responsible Officials:
We partially agree with the finding and provide details in our Corrective Action Plan.